US$ 450 million syndicted loan for MTN

The Standard Bank Group and Sumitomo Mitsui Banking Corporation, together with a syndicate of leading South African and international banks, have arranged a US$ 450 million two year syndicated loan facility for Mobile Telephones Networks Holdings Limited (MTN).

The facility will assist MTN, which has over 3,2 million subscribers, with its plans to grow beyond South Africa, and become the leader in mobile telecommunications throughout Africa.

MTN, solely, or in collaboration with local partners, operates networks in Swaziland, Uganda, Rwanda and Cameroon. In January 2001, MTN secured one of the four licences offered to tender by the Nigerian Communications Commission. MTN is poised to take advantage of Africa’s largest market of over 120 million people and to provide technologies that have the potential to transform the Nigerian economy.

Says Rob Nisbet. Financial Director, MTN: "The purpose of the facility is to take out a US$ 350 million bridge facility provided by the mandated arrangers in January 2001, which was used to finance the licence acquisition and initial working capital for our Nigerian operation.

"The conclusion of this facility is one of the key steps in enabling MTN to achieve its strategy of becoming the leading provider of telecommunications services in Africa. The proceeds will be used to further capitalise our Nigerian operation and other opportunities that may come up."

Says Adrian Walker, Senior Manager, Syndications & New Issues, Standard Bank London Limited: "The success of this facility is a tribute to the strength of MTN’s senior management and ownership. This facility was launched at a time when investors have been wary of increasing exposure to counterparties active in the telecommunications, media and technology sector. MTN has been able to demonstrate a proven track record and, going forward, present a coherent and logical business plan to participating banks, based on existing technology combined with proprietary technologies developed in house."

Adds Chris Newson, Director, Corporate Banking, Standard Corporate and Merchant Bank (SCMB): "We as a group are delighted to have played such an integral part of this facility. We believe this has proved how South African banks can work together with international partners in assisting our South African clients realise their regional and global ambitions. Given current market conditions, the success of this facility is a credit to MTN."

Mark Gordon, Assistant General Manager, Sumitomo Mitsui Banking Corporation: "In a wider context, this facility is important for the continuing development of the South African syndicated loan market. This year has seen a substantial increase in the volume of transactions for prime South African borrowers. This facility has provided a template how domestic and international banks active in South Africa can work together to provide liquidity to their South African client base."

The facility was initially launched at US$ 500 million. However, due to stronger than anticipated year-end operating income, MTN requested a reduction in the facility to US$ 450 million. The facility carries an interest rate of LIBOR + 1,50% for the first nine months of the facility, LIBOR + 2.00% for the second nine months, and LIBOR + 2.50% for the final six months

The full syndicate is as follows

Mandated Arrangers:       Standard Bank London Limited
                                            Sumitomo Mitsui Banking Corporation

Underwriters:                    Standard Finance (Isle of Man) Limited
                                           Sumitomo Mitsui Banking Corporation

Joint Arranger:                  Absa Bank Limited London branch

Co-Arranger:                     Société Générale Johannesburg branch

Managers:                         Investec
                                           Nedcor Trade Services
                                           RMB International (Dublin) Limited
                                           (a member of the FirstRand Banking Group)

Participants:                      Bumiputra-Commerce Bank Berhad
                                           Citibank N.A.
                                           Standard Chartered Bank
                                           Westdeutsche Landesbank Girozentrale, Düsseldorf

Bookrunners:                    Standard Bank London Limited
                                           Sumitomo Mitsui Banking Corporation
                                      

Documentation Agent:      Sumitomo Mitsui Banking Corporation

Facility Agent:                   Standard Bank London Limited

For further information, contact:

Standard Bank London Limited
Adrian Walker, Senior Manager, Syndications & New Issues
Tel: + 44 20 7815 4385
Fax: + 44 20 7815 4353
Email: adrian.walker@standardbank.com

Mobile Telephone Holdings (Proprietary) Limited
Rob Nisbet, Finance Director
Tel: + 27 11 301 6000
Fax: + 27 11 301 6989
Email: nisbet_r@mtn.co.za